The waterway, which accounts for the transport of about one-fifth of global crude supplies, has been mostly devoid of traffic since the United States and Israel launched military attacks on Iran on Saturday.
Crude prices continued to surge early on Tuesday, with Brent futures topping US$85 a barrel for the first time since July 2024 amid talk of US$100 oil due to a lengthy outage of Strait of Hormuz activity.
But Brent instead finished at US$81.40 per barrel, still up 4.7 percent, after Trump announced that the US navy would escort oil tankers through the Strait of Hormuz if needed, and ordered Washington to provide insurance for shipping.
Art Hogan of B Riley Wealth Management said the moderation in oil prices also buttressed the stock market. The broad-based S&P 500 finished down 0.9 percent at 6,816, more than 100 points above its level earlier in the day.
“Higher energy prices are a drag on the economy,” Hogan said. “Any sort of alleviation in the short-term is going to be a relief for markets.”
On Tuesday, US and Israeli strikes pummelled targets across Tehran.
Drones and missiles crashed into oil facilities and US diplomatic missions in the Gulf as the Islamic republic retaliated, and Israel pushed troops deeper into Lebanon to battle the Tehran-backed militia Hezbollah after it entered the fray.
The rise in energy costs could give most central bankers a headache as they look to bring down inflation while also cutting interest rates to support their economies.
Capital Economics economists Jennifer McKeown and William Jackson said the US Federal Reserve, ECB and Asian central banks would likely delay interest rate cuts.
The dollar, seen as a safer bet in times of economic unrest, extended gains against major rivals.
The S&P 500 fell 0.9 percent, to 6,816, the Dow fell 0.8 percent, to 48,501, while the Nasdaq fell 1 percent, to 22,516. (AFP)
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